Menus to reveal what happens to your tip

Restaurants could be made to reveal on menus how much, if any, of their service charge is paid to waiting staff. The measure will be among proposals announced next week to ensure that diners know what happens to their tips, The Times has learnt.

Some establishments keep all gratuities, while others â€“ particularly restaurant chains â€“ funnel tips into waitersâ€™ basic wages. Ministers have already pledged to close a loophole that allows restaurants and hotels to use service charges to top up pay rates beneath the minimum wage, currently Â£5.73 an hour.